The MANA/USD pair has seen a significant rebound over the past week, suggesting a respite from the correction phase. Moreover, the technical chart accentuates the current recovery by revealing a cup and handle pattern. This pattern should help buyers to breach the weekly resistance of $2.9.
Key technical points:
- The MANA buyers flipped the dynamic 20 DMA resistance to support
- The intraday trading volume in the MANA is $4.9 Billion, indicating a 27% fall.
During the correction phase in Decentraland price, the alt price was resonating in a falling wedge pattern in the daily time frame chart. This pattern has helped bears to sell at rallies and tumbled the coin to 0.786 Fibonacci retracement level($1.7).
However, during the last week of January, the buyers made a 40% price recovery from the $2 support. The coin price pierced through the pattern’s resistance trendline and reached $2.88 by the month-end.
The MANA/USD buyers managed to sustain the coin price above 200 DMA, indicating the bullish trend remained intact. Moreover, the recent recovery has flipped the 20 DMA into a possible support level.
The daily-Relative Strength index(48) assists this rally with an impressive recovery from the oversold region.
MANA Price Displays A Cup And Handle Pattern
The V-Shaped recovery in price action shows the formation of a cup and handle pattern. The MANA price structuring the handle portion of this pattern should lead the price to the $2.9 neckline.
A bullish breakout and daily-candle closing above the combined resistance of 50 DMA and $2.9 would provide a 20% rally to the $3.5 mark and a better confirmation for a recovery rally.
However, if buyers couldn’t sustain the handle portion above the $2.45, the alt will sink to the $2 mark, which should confirm buyers’ interest at this support.
- Resistance levels- $2.9 and $3.5
- Support levels- $2.45 and $2
The post MANA Price Analysis: Why MANA Price May Soon Reclaim $3 Mark ? appeared first on CoinGape.
Don't forget to share your review/suggestions for the android app.
All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risks